Unlocking Mortgage Solutions for Foreign Buyers in Panama
- Ken Norton
- Sep 29
- 3 min read
Updated: Oct 13
Buying real estate in Panama has long been a dream for many expats, retirees, and international investors. From beachfront condos to countryside villas and even commercial ventures, the opportunities are rich and diverse. However, there has always been one major challenge for foreigners: getting access to financing.
Traditional banks in Panama are known for their strict lending policies and lengthy approval processes. These often discourage or disqualify non-residents. Fortunately, this is changing. A new mortgage solution is specifically designed to help international buyers finance property in Panama.
A Mortgage Service Designed for Expats
This isn’t your standard local mortgage service. Instead of relying solely on Panamanian banks, this program connects buyers with a broad network of lenders across Latin America and the Caribbean. The result is more flexible loan options for foreigners who may not otherwise qualify.
Better yet, the entire process can be managed in English—from the paperwork to closing. This makes it easier for expats and international investors to navigate without language barriers.
Who Qualifies?
The mortgage programs are crafted specifically for non-residents. Whether you’re salaried, self-employed, or a retiree, qualification is based on your income profile.
Key Loan Features at a Glance
Loan purposes: Purchase, construction, land acquisition, and cash-out refinance (with permanent residency)
Loan amounts: $60,000 to $1,000,000+ (case by case)
Loan-to-value ratio: Up to 75%
Terms: 25–30 years depending on age
Rates: 6.5% – 9.5% (as of September 2025)
Closing flexibility: Documents can be signed abroad (via POA and apostille)
No pre-payment penalty after 5 years (sometimes waived earlier)
Commercial loans available on a case-by-case basis
Local life insurance required
Costs & Fees
Success fee: 1%–2% of the loan amount
Appraisal costs (property dependent)
Closing costs: 4%–6% of loan amount
What Can Be Financed?
Eligible properties include:
Single-family homes
Condos
Land for development
Vacation or second homes
Commercial projects (case by case)
This opens the door for expats, retirees, and investors who want to build, buy, or expand into Panama’s property market without relying solely on cash purchases.
Why This Matters for Foreign Buyers
For years, the lack of accessible financing has been one of the biggest barriers for foreigners hoping to own property in Panama. These new loan programs finally change that. Buyers can now secure funding with competitive rates, flexible terms, and guidance tailored to their needs.
The Benefits of Financing in Panama
Financing a property in Panama offers several advantages. First, it allows buyers to leverage their investments. Instead of tying up all their cash in a single property, they can use financing to maintain liquidity. This is particularly beneficial for those looking to invest in multiple properties or diversify their portfolios.
Moreover, the competitive interest rates available through these new mortgage solutions make it an attractive option. Buyers can take advantage of lower monthly payments, making homeownership more affordable.
Final Thoughts
With these new mortgage solutions, Panama is becoming even more attractive as a destination for property ownership and investment. Whether you’re looking for a permanent home, a vacation getaway, or a profitable real estate investment, financing is now within reach—even for non-residents.
📩 Interested in exploring your options? Contact a mortgage specialist today and take the first step toward owning property in Panama.
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